|Basis of Allotment|
is only an advertisement for information purposes and not a Prospectus announcement.
This does not constitute invitation or offer to acquire, purchase or subscribe for securities. Not for release, publication or distribution, directly or indirectly outside India.
KARDA CONSTRUCTIONS LIMITED
Our Company was incorporated as Karda Constructions Private Limited on September 17, 2007 as a Private Limited Company under the Companies Act, 1956 with the Registrar of Companies, Mumbai bearing Registration No. 174194. Subsequently, our Company was converted to a public limited company and a fresh certificate of incorporation consequent upon conversion to a public limited company was issued by the Registrar of Companies on March 17, 2016 in the name of Karda Constructions Limited. For details of change in registered address of the Company, please refer the chapter 'History and Certain Corporate Matters' on page no. 117 of the Prospectus.
Registered Office: 2nd Floor, Gulmohar Status, Above Business
Bank, Samarth Nagar, Nashik - 422 005 | Tel No.: +91 - 253 - 2351090
OUR PROMOTER: MR. NARESH KARDA
BASIS OF ALLOTMENT
The Equity Shares are proposed to be listed on the BSE Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") and the trading will commence on April 02, 2018, subject to receipt or listing and trading approvals from the Stock Exchanges.
PUBLIC ISSUE OF 43,00,000 EQUITY SHARES OF FACE VALUE OF RS 10 EACH (THE "EQUITY SHARES") OF KARDA CONSTRUCTIONS LIMITED (OUR "COMPANY" OR "ISSUER") FOR CASH AT A PRICE OF RS 180 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS 170 PER EQUITY SHARE) AGGREGATING TO RS 7,740.00 LAKHS (THE "ISSUE") COMPRISING OF A FRESH ISSUE OF 23,00,000 EQUITY SHARES BY OUR COMPANY AGGREGATING TO RS 4,140.00 LAKHS (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 20,00,000 EQUITY SHARES BY MR. NARESH KARDA ("THE PROMOTER SELLING SHAREHOLDER") AGGREGATING TO RS 3,600.00 LAKHS ("OFFER FOR SALE"). THE ISSUE WOULD CONSTITUTE 34.96%, OF OUR POST-ISSUE PAID-UP EQUITY SHARE CAPITAL.
THE FACE VALUE OF EQUITY SHARES IS RS 10 EACH.
Risks to Investors:
i. The Book Running Lead Manager associated with the Issue has handled 25 public issues
(including 24 SME Issue and 1 Main Board Issue) in the past three years, out of which 4
issue closed below the issue price on listing date.
In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended ("SCRR"), this is an Issue for at least 25% of the post-Issue paid-up equity share capital of our Company. The Issue is being made through the Book Building Process in accordance with Regulation 26 (1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the "SEBIICDR Regulations"), where in 10% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers ("QIBs") ("QIB Portion"), 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 40% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 50% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. Under-subscription, if any, in any category, except the QIB Portion, would be met with spill-over from any other category or categories, as applicable, on a proportionate basis, subject to applicable law. All potential investors are required to mandatorily use the Application Supported by Blocked Amount ("ASBA") process providing details of the irrespective bank accounts which will be blocked by the Self Certified Syndicate Banks ("SCSBs"). Specific attention of investors is invited to the chapter titled "Issue Procedure" on page no. 228 of the Prospectus. The Issue received 45,666 Applications for 56,83,040 Equity Shares (before technical rejections) resulting in 1.32 times subscription. The details of the Applications received in the Issue (Before technical rejections) from various categories are as under
Detail of the Applications Received
* The under subscribed portion from this category has been spilled over to Retail Individual Investors & QIB category in the ratio of their allocation in the Issue.
A summary of the final demand as per the BSE and the NSE as on the Bid/Issue Closing Date at different Bid prices is as under:
The Basis of Allotment was finalised in consultation with the Designated Stock Exchange - BSE Limited on March 26, 2018.
1) ALLOTMENT TO RETAIL INDIVIDUAL INVESTORS (AFTER TECHNICAL REJECTIONS): The Basis of Allotment to the Retail Individual Investors, who have Bid at Cut-off Price or at or above the Issue Price of Rs 180 per Equity Share, was finalized in consultation with BSE. The category has been subscribed to the extent of 1.89 times. The total number of Equity Shares Allotted in this category is 28,81,600 Equity Shares (including spill over of Rs,31,600 shares from NIB Category) to 36,020 successful applicants. The category-wise details of the Basis of Allotment are as under:
2) ALLOTMENT TO NON INSTITUTIONAL BIDDERS (AFTER TECHNICAL REJECTIONS): The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Issue Price of X180 per Equity Share or above, was finalized in consultation with the BSE. This category has been subscribed to the extent of 0.49 times. The total number of Equity Shares allotted in this category is 8,42,080 Equity Shares to 64 successful applicants. The under subscribed portion of 8,77,920 Equity Shares from this category has been spilled over to Retail Individual Investors & QIB category in the ratio of their allocation in the Issue. The category-wise details of the Basis of Allotment are as under:
3) ALLOTMENT TO QIBS: Allotment to QIBs, who have bid at the Issue Price of X180 per Equity Share or above, has been done on a proportionate basis in consultation with the BSE. This category has been subscribed to the extent of 1.55 times of QIB portion. The total number of Equity Shares allotted in the QIB category is 5,76,320 Equity Shares (including spill over of 1,46,320 shares from NIB Category), which were allotted to 2 successful Applicants.
The Board of Directors of our Company at its meeting held on March 27,2018 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being BSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation will be dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been dispatched / mailed for unblocking of funds and transfer to the Public Issue Account on or before March 27,2018. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on or before March 27,2018 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is in the process of filing the Listing application with BSE and NSE on or before March 27,2018. Our Company is taking steps to get the Equity Shares admitted for trading on the BSE and NSE within 6 working days of the closure of the Issue.
Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated March 22, 2018 filed with the Registrar of Companies, Mumbai ("RoC").
INVESTORS PLEASE NOTE
The details of the allotment made has been hosted on the website of the Registrar to the Issue, Bigshare Services Private Limited at Website: www.bigshareonline.com
All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole Bidder Serial number of the ASBA form, number of Equity Shares bid for, Bidder DP ID, Client ID, PAN, date of submission of the Bid cum Application Form, address of the Bidder, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and copy of the Acknowledgment Slip received from the Designated Intermediary and payment details at the address given below:
BIGSHARE SERVICES PRIVATE LIMITED
LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF KARDA CONSTRUCTIONS LIMITED.